WEBVTT - Intel Spending Billions to Revive Manufacturing 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanabek. We're here every day bringing 0:00:07.280 --> 0:00:09.799 you the latest news from the world of business and finance, 0:00:09.840 --> 0:00:13.600 plus technology, politics, economics, all parnessing the power of Business 0:00:13.640 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.120 --> 0:00:19.480 analyst in more than one hundred and twenty countries. You 0:00:19.480 --> 0:00:22.840 can download Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg 0:00:22.840 --> 0:00:24.840 dot Com. 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So we talked about 0:00:35.159 --> 0:00:37.879 some of the headlines today from Anglo Merkel making an 0:00:37.920 --> 0:00:40.720 about face when it comes to shutting down her economy. 0:00:41.200 --> 0:00:44.320 You've got cases, virus cases passing a hundred and twenty 0:00:44.320 --> 0:00:47.440 four million, tim death succeeding two point seventy three more 0:00:47.440 --> 0:00:50.680 than four hundred sixty million those shots have been given worldwide. 0:00:50.840 --> 0:00:53.400 Let's get into it with Elizabeth Stewart, Professor of American 0:00:53.440 --> 0:00:55.680 Health at the Johns Hopkins Bloomberg School of public Health 0:00:55.760 --> 0:00:57.760 joining us on the phone from Washington, d C. The 0:00:57.840 --> 0:01:00.120 Johns Hopkins Bloomberg School of Public Health is supported by 0:01:00.280 --> 0:01:04.360 Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies. 0:01:04.520 --> 0:01:07.480 Professor Stewart, Thanks so much for joining us. What is 0:01:07.520 --> 0:01:10.640 concerning you right now, because there's this interesting dichotomy playing 0:01:10.640 --> 0:01:12.760 out here in the U S which is millions of 0:01:12.840 --> 0:01:15.600 vaccines a day are being given in the US, but 0:01:15.640 --> 0:01:18.480 at the same time we are not seeing that necessarily 0:01:18.520 --> 0:01:21.399 reflected in great news when it comes to cases in 0:01:21.440 --> 0:01:25.480 many parts of the country. Yeah, thanks so much for 0:01:25.520 --> 0:01:27.399 having me to talk about this, And I think you're 0:01:27.440 --> 0:01:31.960 exactly right. There's sort of some feelings of cautious optimism 0:01:32.040 --> 0:01:34.760 with pretty good vaccine rates in the US. You know, 0:01:34.840 --> 0:01:37.080 would be good to speed them up, but we're doing 0:01:37.080 --> 0:01:40.400 pretty well with with the vaccinations. But at the same time, 0:01:40.400 --> 0:01:42.679 we really can't let down our guard, and you know, 0:01:42.720 --> 0:01:44.399 we're sort of people talk about we're kind of at 0:01:44.400 --> 0:01:47.240 a race with the variants that are emerging um, and 0:01:47.319 --> 0:01:49.600 so we really need to kind of get those vaccinations 0:01:49.600 --> 0:01:52.040 out and in some people's arms, and also at the 0:01:52.080 --> 0:01:54.360 same time not let down our guard too much. We 0:01:54.400 --> 0:01:56.520 need to kind of give a little bit more time, 0:01:56.920 --> 0:02:00.960 more physical distancing, continued mask wearing, uh, so that we 0:02:01.000 --> 0:02:03.520 can really sort of look ahead a few months and 0:02:03.560 --> 0:02:05.360 really hope that we're in a much better place then, 0:02:05.640 --> 0:02:08.280 you know, Professor Stewart, We have some upcoming coverage in 0:02:08.320 --> 0:02:11.400 the Bloomberg Business Week magazine that's all about the potential 0:02:11.440 --> 0:02:14.760 for a COVID passport in order to allow traveling happening. 0:02:14.800 --> 0:02:16.800 But one of the concerns is that we don't really 0:02:16.840 --> 0:02:21.720 know how long the vaccine ultimately keeps you immune from 0:02:21.720 --> 0:02:24.359 potentially getting the virus again or getting a variant. And 0:02:24.760 --> 0:02:26.799 I do wonder, what is it that you are watching 0:02:26.840 --> 0:02:29.800 closely to make sure that we get enough population vaccinated 0:02:29.840 --> 0:02:36.120 by what date ahead of any possible variant or another wave. Yeah, 0:02:36.160 --> 0:02:38.160 I think it's a it's a great question, and we 0:02:38.200 --> 0:02:41.000 are certainly monitoring that. I want to say that there 0:02:41.080 --> 0:02:44.320 is some sort of growing evidence or sort of emerging 0:02:44.320 --> 0:02:47.560 as evidence I should say that the vaccines actually give 0:02:47.639 --> 0:02:51.280 longer lasting and better immunity than infections, and so I 0:02:51.280 --> 0:02:53.560 want to sort of point out that it does. There's 0:02:53.639 --> 0:02:57.000 hope that the vaccinations will actually kind of help us 0:02:57.040 --> 0:03:00.720 even more than people sort of being naturally infected. Um, 0:03:00.760 --> 0:03:02.360 but we do really need to you know, there are 0:03:02.639 --> 0:03:06.880 these variants emerging in different places. It's unclear whether there 0:03:06.919 --> 0:03:09.639 might be booster shots needed for vaccines, you know, sort 0:03:09.639 --> 0:03:12.280 of like we have flu shots every year. UM. So 0:03:12.320 --> 0:03:15.399 the scientists are working really hard on that, and I'm 0:03:15.400 --> 0:03:17.840 hopeful and really quite hopeful that they will sort of 0:03:18.360 --> 0:03:21.360 you know, maybe we'll need those booster shots. But you know, 0:03:21.400 --> 0:03:24.239 it does seem like the vaccines are really still working 0:03:24.360 --> 0:03:27.320 very well, and I think, well, no much better kind 0:03:27.320 --> 0:03:29.359 of where the country will be in a couple of months, 0:03:30.080 --> 0:03:34.440 hopefully most adults will have access to the vaccine you know, 0:03:34.520 --> 0:03:37.280 sort of early summer, uh, and that I think that 0:03:37.320 --> 0:03:39.720 will really will really start to see some good results 0:03:39.800 --> 0:03:41.720 after that. What do we need to do when it 0:03:41.760 --> 0:03:44.960 comes to addressing other issues related to pandemic and lockdown, 0:03:45.160 --> 0:03:47.880 namely mental health and the way that we've seen this 0:03:47.920 --> 0:03:52.800 pandemic in lockdowns affect young people, especially those kids who 0:03:52.960 --> 0:03:54.960 missed out on a year of in person school. Here 0:03:55.000 --> 0:03:57.080 in New York City high schools just went back to 0:03:57.080 --> 0:03:59.760 in person learning on Monday, for example. What do we 0:03:59.800 --> 0:04:03.080 need do? Yeah, thanks so much for raising this I 0:04:03.080 --> 0:04:05.800 think it's a topic that hasn't been getting a lot 0:04:05.800 --> 0:04:08.240 of attention, But we need to remember that the mental 0:04:08.280 --> 0:04:11.640 health implications might linger a long time even after this 0:04:11.720 --> 0:04:16.279 sort of infectious disease pandemic results. As you noted, we're 0:04:16.320 --> 0:04:19.120 finding in a lot of studies that sort of eighteen 0:04:19.200 --> 0:04:21.600 to thirty year olds and even those under the eighteen 0:04:21.680 --> 0:04:25.720 are experiencing really high levels of distress. You know. Recent 0:04:25.960 --> 0:04:29.440 Pew Research Center study just in the past month found 0:04:29.440 --> 0:04:32.599 that approximately a third of young adults were experiencing high 0:04:32.680 --> 0:04:35.080 levels of mental distress UM and that was the highest 0:04:35.200 --> 0:04:38.280 rate among age groups. It's a group where they were 0:04:38.320 --> 0:04:41.599 sort of just starting to get you know, emerging into adulthood, 0:04:41.600 --> 0:04:44.320 and they're kind of late teens and early twenties are 0:04:44.360 --> 0:04:47.960 looking very different than they sort of were expecting. So 0:04:48.000 --> 0:04:52.240 I think we're gonna need really attention to screening for them, 0:04:52.400 --> 0:04:55.680 screening for all of us really also connections to services. 0:04:56.120 --> 0:04:59.440 There are effective mental health services available UM, and we 0:04:59.480 --> 0:05:01.600 need to make sure as those kids can sort of 0:05:01.640 --> 0:05:04.280 recover from this time in their lives. We're gonna talk 0:05:04.320 --> 0:05:06.920 about this a little bit more mental health, uh, and 0:05:07.160 --> 0:05:09.600 what companies are doing. We've got the CEO of Accenter 0:05:09.680 --> 0:05:12.960 North America, and he specifically they've been reaching out to 0:05:13.000 --> 0:05:16.799 their employees creating programs because they realize this is something 0:05:16.800 --> 0:05:20.839 that's had a tremendous impact on their workforce. I do 0:05:20.960 --> 0:05:24.839 wonder too, if this is raised overall our awareness that 0:05:25.000 --> 0:05:28.600 mental well being is as important, uh, Professor Stewart as 0:05:28.600 --> 0:05:30.839 our physical well being, and kind of taken away maybe 0:05:30.880 --> 0:05:32.520 some of the stigma of talking about it. And just 0:05:32.560 --> 0:05:36.760 got about fifty seconds. Yes, I certainly hope so. Um. 0:05:37.120 --> 0:05:39.440 I think this new attention is great. It's wonderful to 0:05:39.480 --> 0:05:42.520 hear about companies that are focusing on this, and yes, 0:05:42.600 --> 0:05:46.840 screening programs, mental health well being programs, it's what we're 0:05:46.839 --> 0:05:50.960 gonna need in a lot of settings, workplaces, schools, all around. 0:05:51.000 --> 0:05:54.360 So it's great to see this this attention. Alright, we're 0:05:54.360 --> 0:05:56.240 gonna leave it on that note. I'm really glad to 0:05:56.279 --> 0:05:58.400 get some time with Elizabeth Stewart. She is Professor of 0:05:58.400 --> 0:06:01.440 American Health at John's Hopkins Bloomberg School of Public Health, 0:06:01.520 --> 0:06:07.160 joining us on the phone from Washington, d C. Him 0:06:07.240 --> 0:06:09.400 we see the battle. It is finally on, or at 0:06:09.440 --> 0:06:11.159 least it kind of feels that way when it comes 0:06:11.160 --> 0:06:14.880 to dominance in the EV market, which begs the question 0:06:15.040 --> 0:06:18.240 is the era of Elon coming to an end? And 0:06:18.320 --> 0:06:21.240 there's an established car company that has beginning a lot 0:06:21.279 --> 0:06:24.200 of attention in terms of its investment into evs. Yeah, 0:06:24.240 --> 0:06:26.279 we're talking about folks, Waggett. This is the subject of 0:06:26.279 --> 0:06:28.560 a story the upcoming issue of Bloomberg business Week magazine 0:06:28.560 --> 0:06:32.080 Bloomberg News Europe Auto's team leader Craig Trudel wrote it, 0:06:32.160 --> 0:06:33.760 and he joins us on the phone from our London 0:06:33.760 --> 0:06:36.560 bureau along with Bloomberg business Week editor Joe Weber on 0:06:36.600 --> 0:06:38.920 the access line in Brooklyn, and Joel, I gotta say 0:06:39.000 --> 0:06:41.680 the first line of craig story, he doesn't date a 0:06:41.680 --> 0:06:44.600 synth pop star publicly puff on blunts, so profess to 0:06:44.680 --> 0:06:47.000 want to die on Mars. But Herbert GeSe is starting 0:06:47.040 --> 0:06:49.359 to look and sound an awful lot like Elon Musk. 0:06:49.880 --> 0:06:53.840 I love that. Yeah, Craig did a great job of 0:06:53.920 --> 0:06:56.000 the story, And you know, I just want to totally 0:06:56.000 --> 0:06:58.320 be clear that you know, for for more than a 0:06:58.360 --> 0:07:02.640 decade now, I think Tesla has just dominated what a 0:07:02.680 --> 0:07:05.640 bunch of naysayers said would never be a viable space, 0:07:05.680 --> 0:07:08.800 and by by being such a leader, in the space. 0:07:08.880 --> 0:07:14.480 It has absolutely transformed the future of the auto industry 0:07:14.760 --> 0:07:17.160 um and the question now is like, are there is 0:07:17.200 --> 0:07:20.480 there going to be meaningful competition? And the head start 0:07:20.560 --> 0:07:23.360 that Tesla has had like leads us to to now 0:07:23.560 --> 0:07:28.000 and Volkswagen is going to basically be of, you know, 0:07:28.160 --> 0:07:32.240 a viable competitor in the very near future. They will 0:07:32.320 --> 0:07:36.400 have almost instant scale from from what we're able to 0:07:36.480 --> 0:07:39.080 kind of look at with their numbers, and we're gonna 0:07:39.160 --> 0:07:41.960 basically see a version of the world that starts to 0:07:41.960 --> 0:07:44.760 look a little bit more like streaming, where Netflix also 0:07:44.800 --> 0:07:48.200 had a huge lead, but it wasn't like other incumbents 0:07:48.240 --> 0:07:51.240 could enter the space and also have a decent business model. 0:07:51.320 --> 0:07:53.520 So so, Craig, how do you how do you see 0:07:53.520 --> 0:07:56.360 this all all setting out? How realistic of a shot 0:07:56.440 --> 0:08:01.040 does Volkswagen really have here to take on Tesla's market power? Yeah, 0:08:01.120 --> 0:08:04.600 I think it's really interesting that the comparison we made 0:08:04.600 --> 0:08:07.400 to streaming absolutely makes sense. And I think, you know, 0:08:07.480 --> 0:08:10.120 the company that we raise in this story that you 0:08:10.120 --> 0:08:12.480 know is a great example of what v W might 0:08:12.760 --> 0:08:16.239 be like is Disney, where you know, they have uh, 0:08:16.280 --> 0:08:18.720 you know, all the hits, Uh, they have an ability 0:08:18.800 --> 0:08:22.280 to you know, bring out some new ones you think about, 0:08:22.640 --> 0:08:25.720 you know, Disney Plus and what a hit the Mandalorian 0:08:25.760 --> 0:08:29.000 has been. Uh, you know, Volkswagen is a company that 0:08:29.480 --> 0:08:32.600 has a lot of flaws and uh, they still have 0:08:32.640 --> 0:08:35.720 a lot to overcome in that regard. But erber dece 0:08:36.120 --> 0:08:39.880 really is dead set on on you know, really taking 0:08:39.920 --> 0:08:42.640 on Musk and he's not uh, you know, sort of 0:08:43.000 --> 0:08:45.520 dismissive of of Ellen. I think that's one of the 0:08:45.520 --> 0:08:49.760 most interesting things about him. He really, I think takes 0:08:50.080 --> 0:08:54.199 Ellen seriously, has thought highly of him and and has 0:08:54.200 --> 0:08:56.560 said so. He's been very public about the idea that 0:08:56.600 --> 0:08:58.840 they are sort of a yardstick for VW, which is 0:08:58.840 --> 0:09:02.160 really something considering this is a company that sells, you know, 0:09:02.240 --> 0:09:05.920 in normal years, more than ten million cars worldwide. Yeah, 0:09:05.960 --> 0:09:08.080 that's a lot of cars. Hey, Craig, I want to 0:09:08.080 --> 0:09:10.920 home in on something that I really focused on in 0:09:10.920 --> 0:09:13.080 your story, and it reminded me of what Volkswagen has 0:09:13.080 --> 0:09:15.360 gone through over the last year. Skeptics you write could 0:09:15.360 --> 0:09:17.680 be forgiven for raising their eyebrows at the idea of 0:09:17.679 --> 0:09:20.360 going electric. And I'm paraphrasing you here, coming as it 0:09:20.400 --> 0:09:22.719 was from the same car maker that spent years gaslighting 0:09:22.720 --> 0:09:26.760 the world about quote clean diesel. Where is where is 0:09:26.840 --> 0:09:30.200 Volkswagen in getting over that scandal because it is you know, 0:09:30.360 --> 0:09:33.120 a tough message I think for the company given its 0:09:33.160 --> 0:09:36.679 recent history. Yeah, it's it's still something that is playing 0:09:36.679 --> 0:09:39.839 out in the course and it's still haunting them, you know, things, 0:09:40.040 --> 0:09:42.320 things that that they're going to have to deal with 0:09:42.360 --> 0:09:45.440 in terms of more settlements, uh and uh, you know, 0:09:45.559 --> 0:09:49.719 dealing with even questions about you know, disclosure. A lot 0:09:49.760 --> 0:09:53.160 of those sorts of issues continue to linger. I think, 0:09:53.200 --> 0:09:56.160 you know, largely the world has you know, kind of 0:09:56.360 --> 0:09:59.240 uh more or less moved on. I'm sure there are 0:09:59.280 --> 0:10:04.160 consumers who you know, did buy into the quote unquote 0:10:04.160 --> 0:10:08.599 clean diesel uh, you know messaging who really felt betrayed 0:10:08.640 --> 0:10:11.440 and would will never buy a VW again. But I 0:10:11.440 --> 0:10:13.680 think we have been surprised to see that, you know, 0:10:13.840 --> 0:10:17.120 especially in America, where you know, VW has never been 0:10:17.400 --> 0:10:21.120 uh you know, really big in the US. But we 0:10:21.240 --> 0:10:24.400 have seen, you know, this is a company that while 0:10:24.400 --> 0:10:27.240 they're still small there, you know, they really have come 0:10:27.280 --> 0:10:29.520 all the way back in terms of the hits that 0:10:29.600 --> 0:10:32.959 they took in the immediate aftermath of that scandal. Uh. 0:10:33.040 --> 0:10:35.640 You know, they remain a sort of bit player, but 0:10:35.679 --> 0:10:38.200 they're back to where they were or were back to 0:10:38.240 --> 0:10:41.440 where they were before COVID hit. And you know, I 0:10:41.440 --> 0:10:45.880 think the thing that there's mentioning their uh Tian and Craig, Uh, 0:10:46.000 --> 0:10:47.280 we can turn it back to you on this again, 0:10:47.400 --> 0:10:51.000 is is the fact that as to to make good 0:10:51.360 --> 0:10:56.480 on basically epic deception, they had to agree to Electrify 0:10:56.520 --> 0:11:00.040 America and that has been a huge infrastructure under a 0:11:00.160 --> 0:11:03.760 king UM. Craig talked to us about what they've attempted 0:11:03.800 --> 0:11:08.360 to be building UM quietly during during the past couple 0:11:08.360 --> 0:11:11.680 of years. Yeah, they they it was a massive settlement 0:11:11.679 --> 0:11:14.560 that they agreed to with the US and California and 0:11:14.800 --> 0:11:18.320 Electrify America is this affiliate that you know, is part 0:11:18.360 --> 0:11:21.679 of two billion. Uh was was a portion of that 0:11:21.720 --> 0:11:25.760 settlement that needed to go to setting up charging infrastructure 0:11:26.240 --> 0:11:28.920 and uh sort of you know, building up sort of 0:11:29.080 --> 0:11:33.679 educating consumers in the US about electric vehicles. And Electrify 0:11:33.720 --> 0:11:38.360 America is now the largest fast charging network in the US. UH. 0:11:38.400 --> 0:11:41.640 This is a company that was you know, set up 0:11:41.640 --> 0:11:44.840 by Volkswagen, funded by Volkswagen, but as sort of a 0:11:44.840 --> 0:11:47.440 condition of the settlement, it also needs to sort of 0:11:47.480 --> 0:11:51.120 benefit everybody. It can't just favor Volkswagen or be you know, 0:11:51.280 --> 0:11:55.040 closed to VW. So this is a network that actually 0:11:55.120 --> 0:11:59.680 is being used by Ford Mustang mach Ee drivers. Uh. 0:11:59.679 --> 0:12:02.480 And it'll it'll be a network that will really come 0:12:02.480 --> 0:12:05.440 in handy for you know, really the broader efforts of 0:12:05.440 --> 0:12:09.240 the industry to go electric electric and take elon Muscan. Hey, Craig, 0:12:09.280 --> 0:12:11.960 really quickly, twenty five seconds. I've seen a picture of 0:12:12.040 --> 0:12:14.800 both Deecee and Musk together. I think it was something 0:12:14.840 --> 0:12:18.640 like the Golden Steering Wheel Awards in Berlin in twenty nine. 0:12:19.080 --> 0:12:21.240 Could these two ultimately work together? And you've gotta be 0:12:21.320 --> 0:12:24.920 quick for me twenty seconds. I could see them absolutely 0:12:24.960 --> 0:12:29.040 wanting to put their their heads together for a project. 0:12:29.440 --> 0:12:31.600 H You know, there was a bit of flirtation even 0:12:32.160 --> 0:12:35.240 that that we learned about back in eighteen during the 0:12:36.000 --> 0:12:40.320 Go Go Private fiasco. So these two could be friends, yeah, 0:12:40.360 --> 0:12:44.319 and then they might actually become SITH pop stars. Who knows. 0:12:44.679 --> 0:12:47.640 It's an incredible story. Craig Trudal, Europe Autos team leader 0:12:47.640 --> 0:12:49.960 of Bloomberg News along with Joel Webber, editor of Bloomberg 0:12:49.960 --> 0:12:54.800 Business Week. So it must read on this Wednesday's about 0:12:54.800 --> 0:12:57.760 Intel CEO Pat Gelsinger. He's charting a comeback for the 0:12:57.800 --> 0:12:59.960 company really to get back to its past hip making 0:13:00.080 --> 0:13:03.000 glory and deal with those current chip shortages. Here's what 0:13:03.000 --> 0:13:06.520 he told Bloomberg a short while ago. COVID caused everybody 0:13:06.600 --> 0:13:09.280 a step back a bit from capacity and build out 0:13:09.320 --> 0:13:12.480 in the supply chain of the industry, and it induced 0:13:12.559 --> 0:13:16.920 a radical increase in demand. So you have supply chains, uh, 0:13:17.200 --> 0:13:20.720 scaling back a bit and demands scaling up radically. Wow, 0:13:20.760 --> 0:13:23.640 and now we're in a position that there's a meaningful shortage, 0:13:23.920 --> 0:13:25.480 and you know it's going to be a couple of 0:13:25.559 --> 0:13:29.480 years until that's fully resolved supply demand and balance or 0:13:29.559 --> 0:13:31.080 is there a lot more going on? That? Of course, 0:13:31.160 --> 0:13:33.920 was Intel CEO Pat Gilsinger catching up with our Emily 0:13:34.040 --> 0:13:37.280 Chang earlier on Bloomberg Television. Let's get into the story 0:13:37.320 --> 0:13:40.160 two of our top chip watchers, Ian King. He is 0:13:40.320 --> 0:13:43.400 u S Semiconductor and Networking reporter at Bloomberg News. He's 0:13:43.440 --> 0:13:45.920 on the phone from our Bloomberg nine sixty. Actually he's 0:13:46.000 --> 0:13:48.800 in our Bloomberg nine sixties studio in San Francisco along 0:13:48.800 --> 0:13:51.319 with an entree of us on he's Bloomberg Intelligence senior 0:13:51.320 --> 0:13:53.800 semi conductor and hardware analyst. He is on the phone 0:13:54.080 --> 0:13:56.560 in New Jersey and I want to start with you. Listen, 0:13:56.640 --> 0:13:58.520 you and I have talked about this before. I've talked 0:13:58.520 --> 0:14:00.720 about it with a non but let's do the big picture. 0:14:00.800 --> 0:14:04.080 Remind everybody of the big backdrop when it comes to 0:14:04.120 --> 0:14:07.040 the U S. Semi conductor industry, because it it's been struggling. 0:14:08.200 --> 0:14:11.880 It's been struggling in terms of its production, as in 0:14:12.160 --> 0:14:15.480 the ability to physically make chips. That's a skill set 0:14:15.520 --> 0:14:18.720 that's been fading. An Intel was the sort of last 0:14:18.720 --> 0:14:22.040 basting of that, and Intel has had its own problems, 0:14:22.080 --> 0:14:25.480 so that's definitely a fade away if you if you like. 0:14:25.640 --> 0:14:29.040 But frankly, the industry couldn't be stronger in general. You 0:14:29.080 --> 0:14:31.920 have other companies and and you know who are actually 0:14:31.920 --> 0:14:35.320 designing and outsourcing their manufacturing, who are going from strength 0:14:35.320 --> 0:14:37.600 to strength, and the US is still by far the 0:14:37.680 --> 0:14:43.920 biggest you know, beneficiary of of this sort of growth 0:14:43.920 --> 0:14:47.600 in sales of semi conductors via companies like Callcom by 0:14:47.640 --> 0:14:51.400 a companies like Broadcom. What does that supply chain look like, though, 0:14:51.440 --> 0:14:55.600 I where does it span? It spans the whole globe. 0:14:55.680 --> 0:15:00.080 Something that could be designed by an American company in 0:15:00.120 --> 0:15:04.520 its design bureau in Europe, then gets manufactured in Taiwan, 0:15:04.680 --> 0:15:08.600 then gets shipped to Malaysia to get packaged, then get 0:15:08.720 --> 0:15:11.640 shipped to a Chinese factory where it gets put into 0:15:11.680 --> 0:15:14.320 an end device, then get ships out of China for 0:15:14.400 --> 0:15:17.440 sale in the US or Europe or anywhere in the world. 0:15:17.720 --> 0:15:19.320 And non come on in on this and kind of 0:15:19.400 --> 0:15:22.040 layer on top of it globally what's going on because 0:15:22.040 --> 0:15:25.480 we keep talking about uh, kind of a tech war, 0:15:25.920 --> 0:15:28.280 tech cold war that's going on, or we'll be going 0:15:28.360 --> 0:15:31.240 on and you see a lot more, especially the Chinese 0:15:31.240 --> 0:15:34.920 and others looking to develop their own ship industries. UM 0:15:35.120 --> 0:15:39.360 layer on that aspect of this too. Yeah, so listen, 0:15:39.560 --> 0:15:42.080 I think he informed it really well. There's two vectors 0:15:42.120 --> 0:15:45.040 of issues, right. One is the chip manufacturing constraints that 0:15:45.160 --> 0:15:48.200 we're seeing UM as a result of the spike in 0:15:48.280 --> 0:15:51.800 demand and the shortage and supply. And the second is 0:15:51.840 --> 0:15:56.920 the technological complexity associated with the production and where Intel 0:15:56.960 --> 0:16:02.960 has been struggling. Now we're Taiwan semiconductor has not been structed. 0:16:03.000 --> 0:16:08.120 It has been producing advanced semiconductors rather efficiently UM so 0:16:08.200 --> 0:16:11.080 much so that it is cornered the market on advanced 0:16:11.800 --> 0:16:17.000 transistor based semiconductors that Qualcom and MD and UM and 0:16:17.200 --> 0:16:21.000 Apple use. So the question is Intel stepping into this 0:16:21.040 --> 0:16:24.400 BOYD saying hey, we can not only regain our past 0:16:24.480 --> 0:16:29.880 glory UM and manufacture these advanced logic chips UM and 0:16:29.960 --> 0:16:33.320 compete with the likes of t SMC, but also that 0:16:33.360 --> 0:16:35.880 we can do it here at home, providing a sort 0:16:35.920 --> 0:16:41.480 of a geographical counterbalance to t SMC, because right now 0:16:41.600 --> 0:16:45.080 all of the advanced logic chipmaking is with t SMC, 0:16:45.280 --> 0:16:48.560 primarily which is based out of Taiwan, and secondarily with 0:16:48.760 --> 0:16:51.360 this Samsung, which is based out a career. So the 0:16:51.480 --> 0:16:56.440 US is trying to provide a geopolitical counterbalance to that 0:16:57.680 --> 0:17:01.200 East Asian basket. If you may know, how does how 0:17:01.240 --> 0:17:04.160 does how does intell do this in the US at 0:17:04.200 --> 0:17:09.040 scale for a price and cost that actually works? Yeah, 0:17:09.119 --> 0:17:11.919 So over the past couple of years, I'm afraid to 0:17:11.960 --> 0:17:15.119 say it hasn't UM, and that's where it has struggled, 0:17:15.240 --> 0:17:19.679 and UM others have taken the mantle of leadership away. Now, 0:17:20.520 --> 0:17:22.080 at the end of the day, it comes back to 0:17:22.160 --> 0:17:25.800 a focus on manufacturing that there again, two factors here 0:17:26.000 --> 0:17:29.240 is making the chips smaller and smaller, or using transitions 0:17:29.240 --> 0:17:31.320 that are smaller and smaller so you can have more 0:17:31.400 --> 0:17:35.159 density packed chips, thereby making it more powerful. Doing it 0:17:35.200 --> 0:17:38.840 at scale reduces the cost per transistor. The other aspect 0:17:38.840 --> 0:17:43.720 of it is that Intel historically has been architecturally monolithic 0:17:43.880 --> 0:17:47.760 one chip um controlled by one die, and the industry 0:17:47.800 --> 0:17:50.480 has moved away from that. It tries to put together 0:17:50.520 --> 0:17:53.480 a bental box of different kinds of chips and made 0:17:53.520 --> 0:17:58.200 on different transistors and different technologies, and effectively it matches 0:17:58.240 --> 0:18:02.600 a workload, so intels more intercot Geltingers straining to do 0:18:02.800 --> 0:18:05.719 multiple things at the same time. Shrink the transistor is 0:18:05.720 --> 0:18:08.439 more effectively that they haven't been able to do in 0:18:08.480 --> 0:18:11.960 the past, change its architecture and build it at scale 0:18:12.320 --> 0:18:15.800 to computer with t smc um I'll tail battle. But 0:18:16.000 --> 0:18:19.800 on a relative basis, we are cautiously optimistic on Intel's 0:18:19.920 --> 0:18:26.600 chances before uh compared to when Geltinger came aboard. So 0:18:27.040 --> 0:18:29.640 we think they've got a good shot. And he's he's 0:18:29.720 --> 0:18:32.240 kind of a new guy in town. UH. And I mean, 0:18:32.800 --> 0:18:35.680 is he a game changer for this company? Well, he's 0:18:35.720 --> 0:18:40.040 the new old guy. Yeah, exactly. His tagline was, you know, 0:18:40.920 --> 0:18:44.760 the new Intel is the old Intelli can remember. Yeah, 0:18:44.800 --> 0:18:48.679 he joined this company in the nineties seventies as a teenager, right. 0:18:48.760 --> 0:18:51.200 He left in two thousand and nine to go and 0:18:51.280 --> 0:18:54.000 run vm ware. But he was you know, he is 0:18:54.080 --> 0:18:57.960 absolutely staped in the company's traditions, and he's also a technologist, 0:18:58.000 --> 0:19:00.640 you know, to he was a chip designer, part of 0:19:00.680 --> 0:19:03.520 the fundamental core of of what Intel is as a 0:19:03.640 --> 0:19:08.080 chip company. He actually physically made himself. So you know, 0:19:08.240 --> 0:19:10.679 back to what An answered, it's that's where the optimism 0:19:10.720 --> 0:19:12.679 comes from. It's like, at least you have somebody in 0:19:12.720 --> 0:19:15.879 control who seems to understand the problem, because that was 0:19:15.920 --> 0:19:19.359 the concern with his predecessor, who's a financial guy. So 0:19:19.400 --> 0:19:22.080 people believe that at least Pat has a handle on 0:19:22.119 --> 0:19:24.720 the problem. And you saw the stop jump up yesterday 0:19:24.760 --> 0:19:28.280 on optimism that hey, he gets it, maybe he can 0:19:28.320 --> 0:19:31.240 fix it. But I think again to what An answaid 0:19:31.280 --> 0:19:33.280 and a lot of other analysts and investors have said, 0:19:33.600 --> 0:19:35.800 it's not going to happen tomorrow. It's going to be 0:19:36.359 --> 0:19:39.000 a slow process and there's no guarantee of success here. 0:19:39.000 --> 0:19:42.760 Intel's birthright doesn't exist anymore. Yea. And meanwhile, you've got 0:19:42.800 --> 0:19:45.080 Apple doing chips right, and other company is doing chips, 0:19:45.080 --> 0:19:47.440 so I feel like it's another And I know all 0:19:47.640 --> 0:19:50.040 chips are not the same, but nonetheless it does feel 0:19:50.080 --> 0:19:53.480 like the industry is definitely changing. Um, guys, thank you 0:19:53.520 --> 0:19:56.640 so much. In king US semiconductor networking reporter at Bloomberg 0:19:56.640 --> 0:19:59.080 News with us from San Francisco and with an answering 0:19:59.119 --> 0:20:01.600 of US and senior MA conductor and hardware analyst at 0:20:01.600 --> 0:20:08.840 Bloomberg Intelligence on the phone in New Jersey. I'm road Marco, 0:20:10.800 --> 0:20:14.440 a journal now. But you let me drive. No, no, no, 0:20:14.800 --> 0:20:19.120 he's going to drug home. Please, I'll do the riding gravel. 0:20:19.880 --> 0:20:27.840 Lets me. I want to drive, Just drive by the 0:20:28.040 --> 0:20:38.639 question trying. This is the drive to the globe. Tim 0:20:38.720 --> 0:20:42.479 me thanks well, drying us on Bloomberg Radio. All right, 0:20:42.560 --> 0:20:45.399 just about ten minutes left in today's trading session. It 0:20:45.520 --> 0:20:47.280 is time for the drive to the closing with us. 0:20:47.320 --> 0:20:51.080 As Dave Masa, he's managing director at Direction, which has 0:20:51.119 --> 0:20:54.119 a roughly twenty billion dollars in assets under management, and 0:20:54.119 --> 0:20:56.760 that includes its Moonshot Innovator DTF that has about three 0:20:57.480 --> 0:21:01.080 four million in assets under manage. It Dave joins us 0:21:01.119 --> 0:21:03.080 on the phone in New York City. Dave, nice to 0:21:03.119 --> 0:21:06.320 have you here with Tim and myself. How are you. 0:21:07.440 --> 0:21:09.400 I'm doing well, Thanks for having me back. So talk 0:21:09.440 --> 0:21:11.680 to me about flows. Where are you guys, what kind 0:21:11.680 --> 0:21:15.320 of money is coming in new investment money that folks 0:21:15.320 --> 0:21:16.720 are looking to put to work, What do the fun 0:21:16.760 --> 0:21:20.359 flows look like, and where is the money going? So 0:21:20.560 --> 0:21:24.000 we're really seeing a contrast and fun flows across are 0:21:24.119 --> 0:21:26.720 both our leverage and inverse EPs, which are primarily for 0:21:26.800 --> 0:21:29.600 traders to folks for a managing their portfolios on a 0:21:29.600 --> 0:21:32.800 short term basis, and then also in our thematic EPs 0:21:32.800 --> 0:21:35.760 like the Moonshot Innovator's fun But what's happening is it's 0:21:35.760 --> 0:21:39.280 a bifurcation from the highest growth areas, which of course 0:21:39.359 --> 0:21:42.000 we're Darling's last year in to some extent this year 0:21:42.240 --> 0:21:45.800 to think of semiconductors, thinks of technology, think of other 0:21:45.880 --> 0:21:49.000 disruptors like cloud computing. But then on the other hand, 0:21:49.119 --> 0:21:53.679 the most beaten down areas like oil and gas, regional banks. 0:21:54.080 --> 0:21:57.720 Almost nothing in between is seeing flows. So all further 0:21:57.840 --> 0:22:00.720 lineup is a bit quiet. But it's either those on 0:22:00.760 --> 0:22:04.560